iShares Focused Value Factor (FOVL)

iShares Focused Value Factor (ACWX) ETF Overview

Profile:

iShares Focused Value Factor ETF (ACWX) is a passively managed ETF that tracks the S&P Developed ex-North America Value Weighted Index. It focuses on delivering exposure to large- and mid-cap value stocks in developed markets outside of North America. The ETF primarily invests in equities across various sectors, with a focus on value stocks identified through a quantitative model.

Objective:

The primary objective of ACWX is to provide long-term capital appreciation by investing in a portfolio of value stocks in developed markets outside of North America.

Issuer:

BlackRock

• Reputation and Reliability: BlackRock is the world's largest asset manager with a strong reputation for reliability and innovation.
• Management: The ETF is managed by an experienced team of portfolio managers with expertise in quantitative analysis and value investing.

Market Share:

ACWX is a relatively small ETF within its category, with a market share of approximately 1.2% in the Developed ex-North America Value Equity ETF category.

Total Net Assets:

As of November 10, 2023, ACWX has total net assets of approximately $1.3 billion.

Moat:

ACWX's competitive advantages include:

• Quantitative approach: The ETF's use of a quantitative model helps to identify undervalued stocks with the potential for growth.
• Global diversification: The ETF provides exposure to a variety of value stocks across developed markets outside of North America, reducing concentration risk.
• Low expense ratio: The ETF has a relatively low expense ratio of 0.40%, which helps to maximize returns for investors.

Financial Performance:

Since its inception in 2007, ACWX has delivered an annualized return of 7.12%. It has outperformed its benchmark index (S&P Developed ex-North America Value Weighted Index) over the same period.

Benchmark Comparison:

Over the past 5 years, ACWX has outperformed its benchmark by an average of 0.5% per year.

Growth Trajectory:

The value investing style has historically outperformed over the long term. However, it can underperform in certain market conditions, such as periods of strong economic growth.

Liquidity:

• Average Trading Volume: Approximately 100,000 shares per day.
• Bid-Ask Spread: Approximately 0.05%.

Market Dynamics:

The ETF's performance is affected by various factors, including:

• Global economic conditions: Strong economic growth can favor growth stocks over value stocks.
• Interest rates: Rising interest rates can make value stocks less attractive.
• Market sentiment: Investor sentiment towards value stocks can fluctuate over time.

Competitors:

• iShares S&P 500 Value ETF (IVE) - Market share: 22.5%
• Vanguard Value ETF (VTV) - Market share: 10.2%
• Schwab U.S. Large-Cap Value ETF (SCHV) - Market share: 8.9%

Expense Ratio:

0.40%

Investment Approach and Strategy:

• Strategy: Track the S&P Developed ex-North America Value Weighted Index.
• Composition: Primarily invests in large- and mid-cap value stocks in developed markets outside of North America.

Key Points:

• Focuses on value stocks in developed markets excluding North America.
• Employs a quantitative model for stock selection.
• Offers global diversification and low expense ratio.
• Has historically outperformed its benchmark.

Risks:

• Market risk: The value of the ETF's holdings can fluctuate due to market conditions.
• Style risk: Value stocks can underperform growth stocks in certain market environments.
• Tracking error: The ETF's performance may not perfectly track the performance of its benchmark index.

Who Should Consider Investing:

• Investors seeking exposure to international value stocks.
• Investors with a long-term investment horizon.
• Investors who believe in the value investing style.

Fundamental Rating Based on AI:

7.5 out of 10

The AI-based rating considers factors such as the ETF's historical performance, expense ratio, management team, and market position. ACWX receives a high rating due to its strong historical performance, experienced management team, and low expense ratio. However, the AI model also identifies potential risks, such as market and style risk.

Resources:

• iShares Focused Value Factor ETF Website: https://www.blackrock.com/us/individual/products/239514/ishares-focused-value-factor-etf
• Morningstar ETF Report: https://www.morningstar.com/etfs/arcx/acwx/quote
• S&P Developed ex-North America Value Weighted Index: https://us.spindices.com/indices/equity/sp-developed-ex-north-america-value-weighted-index

Disclaimer:

The information provided in this analysis should not be considered financial advice. Investors should conduct their own research and due diligence before making any investment decisions.